Method and GUI for settlement of commodity contracts denominated in commodity contract tokens

ABSTRACT

A computer method and graphical user interface (GUI) for settlement of a commodity contract includes displaying, on an electronic display of a first user device, a GUI for receiving input of information related to a particular commodity smart contract for transfer of a commodity, receiving input data including information related to commodity attributes from a first user via the GUI, displaying a commodity price field in the GUI, transferring the received input data to a server computer, displaying a commit object in the GUI receiving input from the commit object, transmitting a commitment to the server computer to cause the server computer to establish a smart commodity contract for the commodity, and displaying, in the GUI on the electronic display, a receipt acknowledgement object indicating that the smart contract is established and the first user is obligated to abide by the smart contract.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application claims priority benefit from U.S. ProvisionalPatent Application No. 62/776,803, entitled “SYSTEM AND METHOD OFSETTLEMENT OF COMMODITY CONTRACTS DENOMINATED IN COMMODITIES,” filedDec. 7, 2018, which application, to the extent not inconsistent with thedisclosure herein, is incorporated herein by reference.

SUMMARY

According to an embodiment, a computer method for use with a graphicaluser interface (GUI) for settlement of a commodity contract includesdisplaying, on an electronic display of a first user device, a first GUIfor receiving input of information related to a particular commoditysmart contract for transfer of a commodity. The computer method includesreceiving, from a first user via the first GUI, input data includinginformation related to commodity attributes. The computer methodincludes displaying a commodity price field in the first GUI, whereinthe commodity price is denominated in second commodity contract tokens.The computer method includes transferring the received input data to aserver computer, displaying, via the first GUI, a first commit objectfor receiving a user commitment to purchase a commodity contract,receiving input via the first commit object, and transmitting acommitment to the server computer to cause the server computer toestablish a smart commodity contract for the commodity, the commitmentcorresponding to the input received from the first commit object. Thecomputer method includes displaying, in the first GUI on the electronicdisplay, a receipt acknowledgement object, the receipt acknowledgementobject indicating that the smart contract is established and the firstuser is obligated to abide by the smart contract.

According to an embodiment, a computer method for settlement of acommodity contract includes establishing a smart contract for a transferof a commodity, and writing the smart contract onto a distributed ledgerand issuing at least one first token representing the smart contract forthe transfer of the commodity. The computer method includes receiving,from a buyer, a second token representing a second smart contract fortransfer of a second commodity, and transferring, to the buyer, thefirst token.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a flow chart showing a computer method for settlement of acommodity contract, using a graphical user interface (GUI), according toan embodiment.

FIG. 2 is a diagram of the GUI described in conjunction with thecomputer method of FIG. 1 , according to an embodiment.

FIG. 3 is a flow chart showing a computer method and GUI for settlementof a commodity contract, according to an alternative embodiment.

FIG. 4 is a flow chart showing a computer method for settlement of acommodity contract, according to an embodiment.

FIG. 5 is a block diagram of a computer system configured to administera commodity material transaction using a distributed ledger, accordingto an embodiment.

DETAILED DESCRIPTION

In the following detailed description, reference is made to theaccompanying drawings, which form a part hereof. In the drawings,similar symbols typically identify similar components, unless contextdictates otherwise. Other embodiments may be used and/or other changesmay be made without departing from the spirit or scope of thedisclosure.

As used herein, the term “seller” will be understood to be, as indicatedby context, interchangeable with “owner”, “offering party” or “user”.The “seller” will be understood to mean a user with authority to offer acommodity contract for sale, using a smart contract carried by adistributed ledger. The term “buyer” will be understood to be, asindicated by context, interchangeable with “counterparty” or “seconduser”. The “buyer” will be understood to mean a user with authority topurchase the commodity contract from the “seller”. The inventorscontemplate that commodity contracts may be bought and sold multipletimes before delivery to an ultimate user, and thus a user who is a“buyer” in a first transaction offering instance may become a “seller”in a second transaction offering instance.

FIG. 1 is a flow chart showing a computer method 100 for settlement of acommodity contract, using a graphical user interface (GUI) 206,according to an embodiment. FIG. 2 is a diagram showing the GUI 206described in conjunction with the computer method 100 of FIG. 1 ,according to an embodiment. FIG. 5 is a block diagram of a computersystem 500 configured to administer a commodity material transactionusing a distributed ledger, according to an embodiment.

Referring to FIGS. 1, 2, and 5 , a computer method 100 for settlement ofa commodity contract includes, in step 102, displaying, on an electronicdisplay 202 of a first user device 204, a first GUI 206 for receivinginput of information related to a particular commodity smart contractfor transfer of a commodity. Step 104 includes receiving, from a firstuser via the first GUI 206, input data including information related tocommodity attributes 208. Step 106 includes displaying a commodity pricefield 210 in the first GUI 206, wherein the commodity price isdenominated in second commodity contract tokens. Step 110 includestransferring the received input data to a server computer 508. Step 112includes displaying, via the first GUI 206, a first commit object 212for receiving a user commitment to purchase a commodity contract. Step114 includes receiving input via the first commit object 212. Step 116includes transmitting a commitment to the server computer 508 to causethe server computer to establish a smart commodity contract for thecommodity, the commitment corresponding to the input received from thefirst commit object. The server may write access to the smart contractto a distributed ledger carried by a plurality of computer memories in aplurality of user devices 510.

Step 118 includes displaying, in the first GUI 206 on the electronicdisplay 202, a receipt acknowledgement object 214, the receiptacknowledgement object 214 indicating that the smart contract isestablished and the first user is obligated to abide by the smartcontract.

According to an embodiment, the computer method 100 further includes, instep 108, receiving a commodity price input into the commodity pricefield 210 from the first user, the input being denominated in secondcommodity contract tokens.

According to an embodiment, the computer method 100 further includes, instep 109, populating the commodity price field 210 with an indexed pricedenominated in second commodity contract tokens.

According to an embodiment, the computer method 100 further includes, instep 120, receiving, from the server computer, and displaying, in thefirst GUI 206, a purchase offer object 216 related to an offer from asecond user for the commodity contract.

According to an embodiment, causing the server computer to establish thesmart commodity contract for the commodity, in step 116, includes thecausing of the server computer to write the smart contract onto adistributed ledger, and to issue at least one particular commoditycontract electronic token representing the commodity contract. Inanother embodiment, causing the server computer to write the smartcontract onto a distributed ledger, in step 116, includes causing theserver computer to record the smart contract on the distributed ledgerspanning a plurality of nodes residing on a plurality of networkeddevices 510.

FIG. 3 is a flow chart showing a computer method 300 for presenting thecommodity contract to a counterparty user, according to an embodiment.According to an embodiment, the computer method 300 includes, in step302, displaying, on an electronic display of a counterparty user device,a second GUI, the second GUI including information related to thecommodity contract. In an embodiment, the second GUI may be a differentGUI than the first GUI. In another embodiment, the second GUI may be adifferent instance of the first GUI.

Step 304 includes displaying, via the second GUI, a second commit objectfor receiving a counterparty user order to purchase the commoditycontract. Step 306 includes receiving a counterparty user commit commandfrom the counterparty user via the second commit object. Receiving thecounterparty user commit command from the counterparty user via thesecond commit object may cause the server computer to transmit and causedisplay, in the first GUI, the purchase offer object 218 related to theoffer from the counterparty user for the commodity contract.

According to an embodiment, referring to FIGS. 1-3 and 5 , the computermethod 100, 300 further includes, in step 122, receiving, via the firstGUI, acceptance of the offer from the first user, using an accept object218 to cause, in step 124, transferring, from a first user wallet to asecond user wallet, at least a portion of the at least one commoditycontract first token, the commodity contract first token representingownership of the commodity contract. Step 126 includes transferring,into the first user wallet from the second user wallet, at least aportion of at least one second commodity contract electronic tokenrepresenting a second smart contract for ownership transfer of one ormore second commodity instances. Step 128 includes writing, with theserver computer to the distributed ledger, a record of a transactionincluding the transferring, from the first user wallet to the seconduser wallet, the at least a portion of the at least one commoditycontract first token, the transferring, from the second user wallet tothe first user wallet, of the at least a portion of the at least onesecond commodity contract token. The transference of the first andsecond commodity contract tokens may cause a transference of ownershipof the first and second commodity contract instances.

According to an embodiment, the particular commodity smart contractcomprises a futures contract including a future delivery date. Inanother embodiment, the particular commodity is a physical commodity.Additionally and/or alternatively, the particular commodity includes oneor more of a fuel, an unrefined fuel, a metal, a food, and a buildingmaterial. In another embodiment, the second commodity is a physicalcommodity. The second commodity may include one or more of a fuel, anunrefined fuel, a metal, a food, and a building material. Additionallyand/or alternatively, the second commodity is a different type ofcommodity than the first commodity.

According to an embodiment, the computer method 100, 300 furtherincludes outputting, via a graphical buyer interface, a notification tothe buyer that the first token has been transferred to the buyer.

According to an embodiment, the distributed ledger is written in one ormore computer readable memories. In an embodiment, the distributedledger includes a blockchain. The blockchain may include one or more ofa public blockchain, a private blockchain and a permissioned blockchain.

According to an embodiment, the smart contract is added to thedistributed ledger as a transaction. In one embodiment, adding the smartcontract to the distributed ledger includes encrypting the smartcontract. In another embodiment, adding the smart contract to thedistributed ledger includes storing the smart contract at one or morecloud locations, encrypting the one or more cloud locations, andentering the encrypted one or more cloud locations onto the distributedledger as a transaction.

FIG. 4 is a flow chart showing a computer method 400 for settlement of acommodity contract, according to an embodiment.

According to an embodiment, the computer method 400 for settlement of acommodity contract includes, in step 402, establishing a smart contractfor a transfer of a commodity. Step 404 includes writing the smartcontract onto a distributed ledger and issuing at least one first tokenrepresenting the smart contract for the transfer of the commodity. Step406 includes receiving, from a buyer, a second token representing asecond smart contract for transfer of a second commodity. Step 408includes transferring, to the buyer, the first token.

According to an embodiment, receiving, from the buyer, the second tokenrepresenting the second smart contract for the transfer of the secondcommodity in step 406, and transferring, to the buyer, the first tokenin step 408, correspond to buying the first token with the second token.According to another embodiment, receiving, from the buyer, the secondtoken representing the second smart contract for the transfer of thesecond commodity in step 406, and transferring, to the buyer, the firsttoken in step 408, correspond to trading the second token for the firsttoken.

According to an embodiment, the computer method 400 further includesestablishing a value of the first token in a cryptocurrency, andestablishing a value of the second token in the cryptocurrency.

According to an embodiment, the computer method 400 further includesreceiving a request from the buyer to buy the first token with thesecond token, determining whether the value of the second token in thecryptocurrency is greater than the value of the first token in thecryptocurrency, and if the value of the second token is greater than thevalue of the first token, granting the request to buy the first tokenwith the second token and crediting, to an account of the buyer, anamount of the cryptocurrency corresponding to a difference between thevalue of the second token and the value of the first token.

According to an embodiment, the computer method 400 further includes ifthe value of the second token is greater than the value of the firsttoken, granting the request to buy the first token with the second tokenand debiting, from the account of the buyer, an amount of thecryptocurrency corresponding to a difference between the value of thefirst token and the value of the second token.

According to an embodiment, the computer method 400 further includesestablishing the value of the first token in a fiat currency, andestablishing the value of the second token in the fiat currency.

According to an embodiment, the computer method 400 further includesreceiving a request from the buyer to buy the first token with thesecond token, determining whether the value of the second token in thefiat currency is greater than the value of the first token in the fiatcurrency, and if the value of the second token is greater than the valueof the first token, granting the request to buy the first token with thesecond token and crediting, to the account of the buyer, an amount ofthe fiat currency corresponding to a difference between the value of thesecond token and the value of the first token.

According to an embodiment, the computer method 400 further includes ifthe value of the second token is greater than the value of the firsttoken, granting the request to buy the first token with the second tokenand debiting, from the account of the buyer, an amount of the fiatcurrency corresponding to a difference between the value of the firsttoken and the value of the second token.

According to an embodiment, in step 406, receiving, from the buyer, thesecond token representing the second smart contract for the transfer ofthe second commodity includes receiving multiple second tokens from thebuyer representing the second smart contract.

According to an embodiment, the computer method 400 further includesdetermining a value of the at least one first token, determining a valueof the one or more second tokens; and determining a number of the secondtokens sufficient to purchase the first token.

According to an embodiment, the computer method 400 further includesdetermining whether the buyer owns the number of second tokenssufficient to purchase the first token. In an embodiment, if the buyerowns the number of second tokens sufficient to purchase the first token,receiving, from the buyer, the second token representing the secondsmart contract for the transfer of the second commodity, in step 406,includes receiving the number of second tokens sufficient to purchasethe first token. In another embodiment, the computer method 400 furtherincludes, if the buyer does not own the number of second tokenssufficient to purchase the first token, determining an amount ofcurrency sufficient to make up a difference between the value of thefirst token and the number of second tokens owned by the buyer, anddebiting, from the account of the buyer, the amount of the currencysufficient to make up the difference.

According to an embodiment, the currency is a cryptocurrency. In anotherembodiment, the currency is a fiat currency.

According to an embodiment, the first commodity is a physical commodity.In an embodiment, the first commodity includes one or more of a fuel, anunrefined fuel, a metal, a food, and a building material.

According to an embodiment, the second commodity is a physicalcommodity. In an embodiment, the second commodity includes one or moreof a fuel, an unrefined fuel, a metal, a food, and a building material.In another embodiment, the second commodity is a different type ofcommodity than the first commodity.

According to an embodiment, the computer method 400 further includesoutputting, via a graphical buyer interface, a notification to the buyerthat the first token has been transferred to the buyer.

According to an embodiment, the distributed ledger is written in one ormore computer readable memories. In one embodiment, the distributedledger includes a blockchain. In another embodiment, the blockchainincludes a public blockchain. Additionally and/or alternatively, theblockchain includes a private blockchain. In another embodiment, theblockchain includes a permissioned blockchain.

According to an embodiment, the smart contract is added to thedistributed ledger as a transaction. In an embodiment, adding the smartcontract to the distributed ledger includes encrypting the smartcontract. In an alternative embodiment, adding the smart contract to thedistributed ledger includes storing the smart contract at one or morecloud locations, encrypting the one or more cloud locations, andentering the encrypted one or more cloud locations onto the distributedledger as a transaction.

FIG. 5 is a block diagram of a computer system 500 configured toadminister a commodity material transaction using a distributed ledger,according to an embodiment. As used herein, the term distributed ledgerwill be understood to include blockchains of various ilks. Illustratedelements described in conjunction with this figure may be describedelsewhere herein and may bear dissimilar reference numbers.Corresponding elements will be understood as equivalent as indicated bycontext.

According to an embodiment, the computer system 500 may include a webserver 502 configured to output a first GUI to a first device 504 for aparty to receive and display information related to a commodity materialtransaction smart contract, according to an embodiment. The web server502 may be further configured to output a second GUI to a second device506 for a counterparty to receive and display information related to acommodity material transaction smart contract, according to anembodiment. The computer system 500 may include a server computer 508,operatively coupled to the web server 502, and configured to executedata transfer and distributed ledger transactions. The server computer508 may be further configured to transmit display data to and receiveuser input from the web server 502, for relay to and from the first andsecond devices 504, 506.

According to an embodiment, the computer system 500 may include aplurality of devices 510 operatively coupled to the web server 502 andcarrying the distributed ledger. The web server 502 may be configured totransmit the distributed ledger transactions to the plurality of devices510, according to an embodiment. The plurality of devices 510 may beconfigured to collectively validate the distributed ledger transactions,according to an embodiment. The web server 502 may be configured toreceive and forward collective validation to the server computer 508,according to an embodiment.

According to an embodiment, the server computer 508 may be furtherconfigured to transfer a first cryptocurrency and/or digital securityassociated with commodity transactions corresponding to transactionsbetween a counterparty wallet 512 and a transaction wallet 514 via theweb server 502. The server computer 508 may issue a distributed ledgertoken corresponding to one or more commodity material transactions,according to an embodiment.

While various aspects and embodiments have been disclosed herein, otheraspects and embodiments are contemplated. The various aspects andembodiments disclosed herein are for purposes of illustration and arenot intended to be limiting, with the true scope and spirit beingindicated by the following claims.

What is claimed is:
 1. A computer method for use with a graphical userinterface (GUI) for settlement of a commodity contract, the methodcomprising: displaying, on an electronic display of a first user device,a first GUI for receiving input of information related to a particularcommodity smart contract for transfer of a commodity; receiving, from afirst user via the first GUI, input data including information relatedto commodity attributes; displaying a commodity price field in the firstGUI, wherein the commodity price is denominated in second commoditycontract tokens; transferring the received input data to a servercomputer; displaying, via the first GUI, a first commit object forreceiving a user commitment to purchase a commodity contract; receivinginput via the first commit object; transmitting a commitment to theserver computer to cause the server computer to establish a smartcommodity contract for the commodity, the commitment corresponding tothe input received from the first commit object, wherein the causing ofthe server computer to establish the smart commodity contract for thecommodity includes causing the server computer to write the smartcontract onto a distributed ledger that includes a blockchain byrecording the smart contract as a transaction on the distributed ledgerspanning a plurality of nodes residing on a plurality of networkeddevices, and to issue at least one particular commodity contractelectronic token representing the commodity contract such that theplurality of networked devices are configured to collectively validatethe transaction, wherein writing the smart contract to the distributedledger further includes: storing the smart contract at one or more cloudlocations, encrypting the one or more cloud locations, and entering theencrypted one or more cloud locations onto the distributed ledger as thetransaction; displaying, in the first GUI on the electronic display, areceipt acknowledgement object, the receipt acknowledgement objectindicating that the smart contract is established and the first user isobligated to abide by the smart contract; receiving, via the first GUI,acceptance of the offer from the first user, using an accept object tocause: transferring, from a first user wallet to a second user wallet,at least a portion of the at least one commodity contract first token,the commodity contract first token representing ownership of thecommodity contract; transferring, into the first user wallet from thesecond user wallet, at least a portion of at least one second commoditycontract electronic token representing a second smart contract forownership transfer of one or more second commodity instances; andwriting, with the server computer to the distributed ledger, a record ofa transaction including the transferring, from the first user wallet tothe second user wallet, the at least a portion of the at least onecommodity contract first token, the transferring, from the second userwallet to the first user wallet, of the at least a portion of the atleast one second commodity contract token.
 2. The computer method ofclaim 1, the method further comprising: receiving a commodity priceinput into the commodity price field from the first user, the inputbeing denominated in second commodity contract tokens.
 3. The computermethod of claim 1, the method further comprising: populating thecommodity price field with an indexed price denominated in secondcommodity contract tokens.
 4. The computer method of claim 1, the methodfurther comprising: receiving, from the server computer, and displaying,in the first GUI, a purchase offer object related to an offer from asecond user for the commodity contract.
 5. The computer method claim 1,the method further comprising: displaying, on an electronic display of acounterparty user device, a second GUI, the second GUI includinginformation related to the commodity contract; displaying, via thesecond GUI, a second commit object for receiving a counterparty userorder to purchase the commodity contract; and receiving a counterpartyuser commit command from the counterparty user via the second commitobject; wherein receiving the counterparty user commit command from thecounterparty user via the second commit object causes the servercomputer to transmit and cause display, in the first GUI, the purchaseoffer object related to the offer from the counterparty user for thecommodity contract.
 6. The computer method of claim 1, wherein thetransference of the first and second commodity contract tokens causes atransference of ownership of the first and second commodity contractinstances.
 7. The computer method of claim 1, wherein the particularcommodity smart contract comprises a futures contract including a futuredelivery date.
 8. The computer method of claim 1, wherein the particularcommodity is a physical commodity.
 9. The computer method of claim 8,wherein the particular commodity includes one or more of a fuel, anunrefined fuel, a metal, a food, and a building material.
 10. Thecomputer method of claim 9, wherein the second commodity is a physicalcommodity.
 11. The computer method of claim 10, wherein the secondcommodity includes one or more of a fuel, an unrefined fuel, a metal, afood, and a building material.
 12. The computer method of claim 10,wherein the second commodity is a different type of commodity than thefirst commodity.
 13. The computer method of claim 1, further comprisingoutputting, via a graphical buyer interface, a notification to the buyerthat the first token has been transferred to the buyer.
 14. The computermethod of claim 1, wherein the distributed ledger is written in one ormore computer readable memories.
 15. The computer method of claim 1,wherein the blockchain includes a public blockchain.
 16. The computermethod of claim 1, wherein the blockchain includes a private blockchain.17. The computer method of claim 1, wherein the blockchain includes apermissioned blockchain.
 18. The computer method of claim 1, whereinadding the smart contract to the distributed ledger comprises encryptingthe smart contract.